Jos A Bank open to raising Men’s Wearhouse bid

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Jos. A. Bank warned that it will withdraw its bid if negotiations are not held by Nov. 14.

Associated Press
November 01, 2013

HAMPSTEAD, Md. — Jos. A. Bank Clothiers Inc. said Thursday that it will consider boosting its $2.3 billion buyout bid for Men’s Wearhouse, but will drop its offer in two weeks if there are still no discussions on the proposal.

Jos. A. Bank made an unsolicited offer of $48 per share for Men’s Wearhouse in September. Earlier this month, Men’s Wearhouse Inc. rejected the bid, calling it ‘‘opportunistic’’ and ‘‘inadequate.’’

On Thursday, Jos. A. Bank said it would consider raising its offer if allowed to assess whether an increased bid is justified. The men’s clothing company said it still believes its initial bid provides ‘‘superior, immediate value’’ to Men’s Wearhouse shareholders.

The company said that the board of Men’s Wearhouse has refused to talk. In a letter to Men’s Wearhouse CEO Douglas Ewert, Jos. A. Bank chairman Robert Wildrick said that if talks are not held by Nov. 14 it will pull its offer.

Jos. A. Bank sells men’s tailored and casual clothing, sportswear, and footwear. While it targets a more established professional, it’s known for generous promotions like buying one suit or sport coat and getting three for free.

Men’s Wearhouse sells sportswear and suits through its namesake chain, as well as the Moores and K&G chains. Recently, it’s been going after younger shoppers. It said
in July that it’s buying the upscale Joseph Abboud brand for $97.5 million.

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